A firm has a contribution ratio of 45% and wants to earn an after tax profit of shs.72,000 and the firm operates in a 32% income tax rate bracket. It has fixed costs of sh.120,000 per anum, being the administrator, marketing and distribution expenses

required

compute the sales volume that will earn the sh 72 after tax profit

what sales volume would earn 3 time the desired profit but before tax?

on the basis of the above results, compile proforma income statement for a and b to verify your results